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UPS & Teamsters reach tentative five-year deal

The International Brotherhood of Teamsters and UPS reached a tentative agreement on a new five-year contract Tuesday. However, the deal has to be approved by the full- and part-time Teamsters employed by UPS. 

UPS CEO Carol Tome said, “Together we reached a win-win agreement on the issues that are important to Teamsters leadership, our employees, and to UPS and our customers. Teamsters General President Sean M. O’Brien said that the tentative contract “sets a new standard in the labor movement and raises the bar for all workers.”

The tentative deal would raise wages by $2.75 per hour in 2023. Additionally, the deal would increase wages by an additional $7.50 per hour over the length of the contract. The contract would set a base part-time salary of $21 per hour. However, part-time workers with seniority would receive more. The average top wage rate for full-time UPS Teamsters would rise to $49 per hour.

The Teamsters said that the agreement would eliminate a two-tier wage system for certain workers. Additionally, they said the deal would create 7,500 new full-time UPS jobs.

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ILA chief calls for global fight against automation

The head of the ILA is calling for global labor action against ocean carriers and MTOs that look to automate their port operations. Additionally, he singled out Maersk for its automation projects along the US West Coast. 

President Harold J. Daggett said those automation efforts can spread across the world and to other parts of the shipping industry. The bid to halt further automation comes as the ILA adds container tracking to the technological risks facing its members.

The current collective bargaining agreement is set to expire in September 2024. The agreement specifically prohibits fully automated terminals and equipment along the East and Gulf coasts. Partial automaton is only allowed when maritime employers institute worker protections such as retraining or new work assignments.

Daggett calls for ‘global response’

Daggett stated that automation at Pier 400 and other terminals in LA and LB cost some 600 dockworker jobs. However, Maersk said that the number of longshore workers at Pier 400 has fluctuated due to port volumes, the impact of the pandemic, and the ongoing modernization project.

Maersk referred to employment figures from the PMA. The data shows that the number of longshore workers in Local 13 who were paid for one or more hours of work at the ports of LA and LB grew from 7,331 in 2019 to 7,550 in 2022.

Daggett also urged seafarer unions to join a proposed global alliance of dockworker unions “to combat automation and new technology.” Additionally, he added that container tracking devices are the most “brazen and well-publicized attempt to circumvent the ILA’s jurisdiction.”

A Hapag-Lloyd executive said that “organized labor can neutralize the value you can extract from automation using high-speed data.” Daggett’s report countered that “there is no empirical evidence establishing that automated ports are altogether more productive, less expensive to operate, or safer than their conventional counterparts.”

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About O’Neill Logistics

O’Neill Logistics is a leading third party logistics provider. We operate in California, Savannah, New Jersey. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.

O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.

Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.

Please reach out to us if you have any questions or need assistance with your logistics solutions!